Report: Manhattan home sales prices burning up

Despite the frigid weather, there is one sector of New York City that's hot this winter: Home sales.

Average sales prices of co-ops, condos and one- to- three-family homes in Manhattan rose 37% to $2.3 million from December 2013 to 2014, according to a report released yesterday by the Real Estate Board of New York.

The driving force behind the price bump, according to the report, were the sales of nine condos at One57 (157 W. 57th St.), each of which were listed at above $20 million.

Across the city, average home sales prices increased 11% from $760,000 in the fourth quarter of 2013 to $841,000 a year later, according to the report. The citywide jump was driven mostly by Manhattan and Brooklyn.

Brooklyn also played a big role in the robust activity, the report said. Brooklyn condos increased by an average of 13% to $781,000 between the fourth quarter of 2013 and 2014, and one- to- three-family homes climbed 17% to $805,000.

But higher prices didn't equal increased sales. A total of 11,699 homes were sold across the city in the fourth quarter of 2014, down 8% from the year before.

Manhattan condo sales were down 11% and Brooklyn sales declined 10% between the fourth quarters of 2013 and 2014.

The Upper East Side of Manhattan saw the most homes sold, with 692, and Bedford Stuyvesant had the highest number in Brooklyn, at 170.

The rise in prices could be causing the decrease in sales volume, explained Mike Slattery, senior vice president at REBNY. However, he said those who are in a position to buy a home are willing to pay higher prices because they are confident about value appreciation in the future.

"The improving prices are a sign that people are confident that the market has stabilized and will get better," Slattery said.